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1 of 9
Business Formula
for
compounded growth
THE POWER OF NUMBERS
Most companies project their future based on
historical data.
They say if we did $5,000,000 last year a 15%
increase would be nice and it’s achievable so our
target is $5,750,000.

This is linear thinking
High performance growth revolves around
exponential thinking.

How do we create compounded growth?
The Business Formula allows us to break the
growth into 5 focus areas and asks how can we
can create 15% growth in each section?
High performance businesses know
the Business Formula

LEADS
X
CONVERSION
=

CUSTOMER
X
AVERAGE SALE
X
TRANSACTION FREQUENCY
=

REVENUE
X
MARGIN
=

PROFIT

Want to see how this works?
Wondering how
this works?
Let’s add some numbers
LEADS
X
CONVERSION
=

4,000
X
25 %
=

CUSTOMER

1,000

X
AVERAGE SALE
X
TRANSACTION FREQUENCY
=

X
$100
X
2
=

REVENUE

$200,000

X
MARGIN
=

X
25%
=

PROFIT

$50,000
Still not sure how
this can help you be
more profitable?
Let’s do the numbers again!
With just a 10% increase in each area…

LEADS
X
CONVERSION
=
CUSTOMER
X
AVERAGE SALE
X
TRANSACTION
FREQUENCY
=
REVENUE
X
MARGIN
=
PROFIT

4,000

4,000

X

x

25%

27.5%

=

=

1,000

1,210

x

x

$100

$110

x

x

2

2.2

=

=

$200,000

$292,820

x

x

25%

27.5%

=

=

$50,000

$80,525

You now have compounding growth
What do YOU need to do to achieve this?

Get laser focused on the 5 key areas of growth
Lead Generation
Conversion rate
Average dollar sale

Number of Transactions
Profit Margin

We’ve got proven strategies for each…
Want some?
Call for a 30min strategy session
with one of the Squirrel Team

1300 780 757
Want to hear a real story?
Watch this short video
to learn how the
4 x Australian Retail Business of the Year
used the Business Formula

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Business Formula for Compounded Growth

  • 2. THE POWER OF NUMBERS Most companies project their future based on historical data. They say if we did $5,000,000 last year a 15% increase would be nice and it’s achievable so our target is $5,750,000. This is linear thinking High performance growth revolves around exponential thinking. How do we create compounded growth? The Business Formula allows us to break the growth into 5 focus areas and asks how can we can create 15% growth in each section?
  • 3. High performance businesses know the Business Formula LEADS X CONVERSION = CUSTOMER X AVERAGE SALE X TRANSACTION FREQUENCY = REVENUE X MARGIN = PROFIT Want to see how this works?
  • 5. Let’s add some numbers LEADS X CONVERSION = 4,000 X 25 % = CUSTOMER 1,000 X AVERAGE SALE X TRANSACTION FREQUENCY = X $100 X 2 = REVENUE $200,000 X MARGIN = X 25% = PROFIT $50,000
  • 6. Still not sure how this can help you be more profitable?
  • 7. Let’s do the numbers again! With just a 10% increase in each area… LEADS X CONVERSION = CUSTOMER X AVERAGE SALE X TRANSACTION FREQUENCY = REVENUE X MARGIN = PROFIT 4,000 4,000 X x 25% 27.5% = = 1,000 1,210 x x $100 $110 x x 2 2.2 = = $200,000 $292,820 x x 25% 27.5% = = $50,000 $80,525 You now have compounding growth
  • 8. What do YOU need to do to achieve this? Get laser focused on the 5 key areas of growth Lead Generation Conversion rate Average dollar sale Number of Transactions Profit Margin We’ve got proven strategies for each… Want some? Call for a 30min strategy session with one of the Squirrel Team 1300 780 757
  • 9. Want to hear a real story? Watch this short video to learn how the 4 x Australian Retail Business of the Year used the Business Formula